{"id":222,"date":"2021-05-15T16:44:54","date_gmt":"2021-05-15T11:14:54","guid":{"rendered":"https:\/\/total-sols.com\/blog\/?p=222"},"modified":"2021-06-09T17:48:26","modified_gmt":"2021-06-09T12:18:26","slug":"introduction-to-business-incorporation-series-cont-4-opc-one-person-company-registration","status":"publish","type":"post","link":"https:\/\/total-sols.com\/blog\/introduction-to-business-incorporation-series-cont-4-opc-one-person-company-registration\/","title":{"rendered":"INTRODUCTION TO BUSINESS INCORPORATION SERIES&#8230;4) OPC (ONE PERSON COMPANY) REGISTRATION"},"content":{"rendered":"\n<p>Continuing on the\nseries, today we will focus on another form of business, namely \u2013 OPC which is\nOne Person Company wherein one person can start a private limited company,\nwhich helps one to build a collaboration at the international level as it gives\nthe status of a private limited company.<\/p>\n\n\n\n<p><strong>Unique Features<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>It is established on the\nprinciple of no perpetual succession.<\/li><li>Since there is only one\nmember, the death of the member will result in the nominee choosing or\nrejecting to become sole member whereas other private companies follow the\nconcept of perpetual succession.<\/li><li>It is a distinct legal\nentity.<\/li><li>The earlier minimum paid\nup capital of Rs. 1 lakh has been removed in Budget 2021 and as of now, there\nis no minimum paid-up capital.<\/li><li>There are no\nshareholders in this business entity.&nbsp; Sweat equity, ESOP or any other\nforms of shares cannot be issued as it is one person.&nbsp; The promoter will\nbe the only shareholder of the company.<\/li><li>The liability of the\ncompany is limited liability, which distinguishes it from proprietorship.&nbsp;\nThat means private property of the one person is not liable for attachment of\ncompany liabilities.<\/li><li>The minimum director\nrequired is one person.&nbsp; However, they can have a maximum of 15 directors.<\/li><\/ol>\n\n\n\n<p><strong>Documents Required for\nregistration:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>DSC of the Promoter.<\/li><li>PAN &amp; Aadhar Copy of\nthe Promoter.<\/li><li>Memorandum should\ncontain objects of the Company, Terms &amp; Condition &amp;&nbsp;nominee consenting to nomination.<\/li><\/ul>\n\n\n\n<p><strong>Privileges &amp;\nImportant points in an OPC:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>No AGM (Annual General\nMeeting) required.<\/li><li>Financial statements\nneed not include cashflow statement.<\/li><li>Company secretary is not\nrequired to sign annual returns, Directors can do it.<\/li><li>Provision of independent\ndirectors does not apply to OPC.<\/li><li>The article of\nassociation can provide additional grounds for vacation of Director\u2019s office.<\/li><li>Most of the provisions\nrelated to meetings and quorum do not apply to them.<\/li><li>The directors can be\npaid more remuneration as compared to other companies.<\/li><li>In Budget of 2021, the\nresident limit for an Indian citizen is 120 days as against 182 days\nearlier.&nbsp; It allowed NRIs also top open OPC in India.<\/li><li>The earlier paidup share\ncapital cap of Rs. 50 lakhs maximum and turnover of Rs. 2 crores to convert as\na private company has been removed.<\/li><li>OPC can be converted to\nany kind of company with effect from April 1, 2021.<\/li><li>The OPC can be started\nonly by Indian Citizens and Residents.<\/li><li>Law prohibits minors\nfrom starting OPC.<\/li><li>OPC cannot be converted\ninto Section 8 company.<\/li><\/ul>\n\n\n\n<p><strong>Conclusion: <\/strong>This form of business is a good model instead of proprietorship for people who do not want to risk their personal capital for the business losses and also this form of business gives the status and image of a private limited company.<\/p>\n\n\n\n<p>Folks, I think things now are much clearer on the various forms of business entities.&nbsp; We will be talking about the private limited company in our next video, so watch out.<\/p>\n\n\n\n<p>  Share &amp; Review us at : <\/p>\n\n\n\n<p><strong>Facebook <\/strong>:&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.facebook.com\/totalsols\" target=\"_blank\">https:\/\/www.facebook.com\/totalsols<\/a><br><strong>Linkedin:<\/strong><a rel=\"noreferrer noopener\" href=\"https:\/\/www.linkedin.com\/in\/a-subramani\/\" target=\"_blank\">https:\/\/www.linkedin.com\/in\/a-subramani\/<\/a><br><strong>Instagram:&nbsp;<\/strong><a href=\"https:\/\/bit.ly\/3fpFzcp\">https:\/\/instagram.com\/totalsols123?igshid=vhhhy4ozhh2q<\/a><br><strong>Youtube Channels&nbsp;:&nbsp;<\/strong><a rel=\"noreferrer noopener\" href=\"https:\/\/rb.gy\/q43drq\" target=\"_blank\">https:\/\/rb.gy\/q43drq<\/a>&nbsp; \/&nbsp;&nbsp; <a href=\"https:\/\/bit.ly\/3ol827x\">https:\/\/bit.ly\/3ol827x<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Continuing on the series, today we will focus on another form of business, namely \u2013 OPC which is One Person Company wherein one person can start a private limited company, which helps one to build a collaboration at the international level as it gives the status of a private limited company. Unique Features It is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,66],"tags":[74,67,78],"class_list":["post-222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounts","category-opc","tag-company-registration","tag-one-person-company","tag-opc"],"_links":{"self":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/comments?post=222"}],"version-history":[{"count":9,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/222\/revisions"}],"predecessor-version":[{"id":254,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/222\/revisions\/254"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media\/209"}],"wp:attachment":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media?parent=222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/categories?post=222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/tags?post=222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}